Proposed Tahoe City hotel faces another lawsuit
By Melissa Siig, Moonshine Ink
The $60 million planned boutique hotel that would be Tahoe City’s first major hotel in more than 60 years is facing a second lawsuit. Five months after settling the first one, Kila Properties, developer of the Tahoe City Lodge, was sued again, literally days before the rundown Henrikson building was set to be demolished; this time by the family that owns the neighboring Bechdolt building.
At the heart of the lawsuit is a 68-year old easement that the family claims the hotel does not have the right to use. But to community leaders, the lawsuit represents much more than one party’s grievance against another; they worry that it threatens the core of Tahoe City’s revival and could discourage developers from investing much-needed funds on the North Shore for decades to come.